UK-based oil major Shell is now targeting a 15-20% reduction by 2030 in the net carbon intensity of the energy products it sells, compared with 2016, against its previous target of 20%.

The company also plans to grow its liquefied natural gas (LNG) business in line with LNG being viewed as a critical fuel in the energy transition.

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“We are cutting emissions from oil and gas production while keeping oil production stable, and growing sales of low-carbon energy solutions while gradually reducing sales of oil products such as petrol, diesel and jet fuel,” the company’s Energy Transition Strategy 2024 report stated.

The firm aims to achieve net-zero emissions by 2050 across all its operations and energy products and said this target is transforming its business.

Progress

The company reported making progress against its climate targets. It said as of 2023, it achieved more than 60% of its target to halve emissions from its operations by 2030, compared with 2016.

The same year, Shell said it achieved 0.05% methane emissions intensity, which is significantly below its target of 0.2%, and in line with a target to achieve near-zero methane emissions by the end of the decade.

Shell also cited that it contributed to the World Bank’s Global Flaring and Methane Reduction Fund last year, which indicates its support for an industry-wide action to drive down methane emissions and flaring.

The company noted having hit – for the third consecutive year – its target to reduce the net carbon intensity of the energy products it sells, with a 6.3% reduction compared with 2016.

To help drive the decarbonisation of the transport sector, Shell has also set a new target to reduce customer emissions from the use of its oil products by 15-20% by 2030 compared with 2021.

Power shift

The company said that its focus on where it can add the most value has led to a strategic shift in its integrated power business.

“We plan to build our power business, including renewable power, in places including Australia, Europe, India and the USA, and have withdrawn from the supply of energy directly to homes in Europe.

“In line with this shift to prioritising value over volume in power, we will focus on select markets and segments,” the firm said, indicating an intention to sell more power to commercial customers, and less to retail customers.

“Given this focus on value, we expect lower total growth of power sales to 2030, which has led to an update to our net carbon intensity target.

“We are now targeting a 15-20% reduction by 2030 in the net carbon intensity of the energy products we sell, compared with 2016, against our previous target of 20%.”

Investments

Shell plans to invest between $10bn and $15bn between 2023 and the end of 2025 in low-carbon energy solutions.

It also cited investing $5.6bn on low-carbon solutions in 2023, more than 23% of its total capital spending.

These investments include electric vehicle charging, biofuels, renewable power, hydrogen and carbon capture and storage.

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